How to get Education Loan for studies, who gets it? Vidya Lakshmi Education Loan Information
In today’s time, college or university studies have become expensive. In such a situation, we see a way of loan to complete our studies. That is, you complete your studies by taking Education Loan. Then repay it through EMI.
So let us know from where we can take loan to continue our further studies.
Vidya Lakshmi Education Loan by Narendra Modi
Narendra Modi has initiated various schemes in various fields since he was elected as the Prime Minister of India. To improve the education system and help the needy people, PM Narendra Modi launched Vidya Lakshmi Portal to provide financial assistance in the form of education loan, scholarship under one portal. Come about the education loan scheme started by Narendra Modi.
What is Vidya Lakshmi Education Loan?
Vidya Lakshmi Portal was launched on 15 August 2015 with the joint efforts of Ministry of Finance of India, Ministry of Human Resource Development of India, Department of Higher Education and Indian Banks Association.
It has been designed to act as a link between students and banks for education loans. Through the portal, which is maintained by NSDL e-Governance Infrastructure Limited, students can apply and track applications for education loans across multiple banks that have partnered with the scheme.
This makes it easy for students to access loan details, apply for various educational loan schemes and check their loan application status through a one-stop portal.
The Portal is free for use by all and can be accessed from anywhere and at any time from any computing device with an internet connection.
Before the launch of this portal, students had to apply to different banks with different forms and the process was inconvenient, hectic and lengthy.
Vidya Lakshmi Portal has made it easy for students to apply, check eligibility, track and access information education loan in India for higher education. Around 38 banks are registered and there are 127 different loan schemes.
Features and Benefits of Vidya Lakshmi Education Loan
Vidya Lakshmi Yojana offers a good amount of education loan for a long tenure at reasonable interest rates. The key features and benefits of this education loan scheme are given below.
Facility of Online Application: One of the most beneficial features of availing education loan under this scheme is that it can be applied online through their portal. Thus, it facilitates the initial loan application. However, after submitting the application form, you will have to visit the bank for document submission and verification.
Apply in multiple banks: Presently, Vidya Lakshmi loan scheme is being offered by 34 public and private sector banks. You can apply for education loan in maximum three banks. Thus it gives multiple options to avail the loan at the most competitive interest rate. If one bank doesn’t accept your application, you still have the other two banks.
One application for multiple applications: When you apply for education loan in three different banks, you need to fill only one common application form available on the Vidya Lakshmi portal. It saves the hassle of filling multiple forms for applying to different banks.
Easy comparison of various loan schemes: On the portal, you can go through various education loan schemes offered by registered banks, compare them and select the one best suited as per your educational needs.
Check Loan Processing Status: After applying for the loan, you can check the loan processing status on the portal uploaded by the respective bank.
Short Time Loan Disbursement: Education loan is disbursed within 15 days of application form submission as directed by Indian Banks Association. Thus, it ensures quick financial assistance to the needy in pursuing higher education.
Sending complaints and queries: You can send any complaint or query regarding education loan to the concerned bank through the portal or by sending an email. Bank officials will get in touch with you and resolve your complaints.
Eligibility Criteria for Vidya Lakshmi Education Loan Subsidy
The eligibility criteria for availing Educational Loan through the portal are:
- Education loan to be availed under IBA Model Education Loan Scheme
- The income of the parents should not exceed Rs 4.5 lakh per annum
- Students must be enrolled in NAAC and NBA accredited institutions, institutions of national importance or centrally funded technical institutions. Professional institutes that are not covered under NAAC or NBA will require approval from the respective regulatory bodies
Vidya Lakshmi Education Loan Registration Process
To use Vidya Lakshmi Portal, you need to register yourself first. You can do so by following the procedure listed below:
- Visit the official website of Vidya Lakshmi
- Click on ‘Register’
- Enter basic details like name, mobile number and email id
- age for terms and conditions and click on ‘Submit’
- On doing so, an activation link will be sent to the email ID provided by you
- You need to click on the link sent to your mail to activate the account
Vidya Lakshmi Portal Login Process
After the completion of the registration process, you can login to the portal. To login, you need to follow the steps mentioned below:
- Visit official website
- Click on ‘Login’
- Select ‘Student Login’
- Enter the email id, password created at the time of registration and the captcha code displayed on the screen
- Click on ‘Login’.
How to search Education Loan in Vidya Lakshmi Portal?
Once you have logged in to the portal, you can search for education loans offered by various banks. To search, follow the steps mentioned below:
- Click on the Search for Loan Scheme tab.
- Select the appropriate option under the place of study, course and loan amount
- After doing this, click on ‘Search’
- On doing so, a list of banks with respective loan schemes will be displayed
Vidya Lakshmi Education Loan Application Process
The process to apply for education loan through Vidya Lakshmi portal is listed below:
- Once the loan list is displayed on the screen, you have the option to locate the nearest bank branch or apply for the education loan.
- On selecting the latter option, you will be redirected to fill the Common Education Loan Application Form (CELAF).
- There, you will see seven tabs under the heading Instructions, Basic Information, Personal Information, Current Banker Details, Course Details, Cost of Finance Details and Document Uploading.
- You will have to go ahead and fill the details asked for. Once you have filled the details in each tab, click on ‘Submit’, then ‘Save’ and finally click on ‘Next’.
- The form will be used to apply in person to the respective bank and scheme chosen by you.
How to Track Vidya Lakshmi Education Loan Status?
Once the application is submitted you will be able to click on the ‘Application StatusYou can check the status of your application by visiting the tab.
You can also contact the bank whose education plan you have chosen while applying.
Eligibility for Vidya Lakshmi Education Loan Against Property
To be eligible for availing education loan against property certain criteria have to be fulfilled. Given below are the criteria to be fulfilled by the students to avail the benefits of Vidya Lakshmi Yojana.
- You must be an Indian citizen.
- Must have passed Higher Secondary Examination or its equivalent.
- Should have secured admission in the preferred academic course through an entrance test in a recognized university.
- Your legal guardian should meet the income criteria prescribed by the lending banks.
- Vidyalakshmi Yojana has not set any minimum score to qualify for the education loan.
- Banks will ask to pledge a property as collateral against the loan amount.
Documents for Education Loan Against Property
The eligibility and documents for education loan against property differ from bank to bank. Listed below are some of the common documents to provide while applying for an education loan.
Documents to be submitted by the students
- Duly filled and self-attested application form.
- Passport size photographs (two each) of the applicant and co-applicant.
- Identity Proof like Voter ID Card, PAN Card, Aadhaar Card etc.
- GE proof of the applicant (Birth certificate or class 10th certificate).
- Address proof including Aadhaar Card, Ration Card, Passport, Driving License etc.
- Records of educational qualification, like, 12th board exam mark sheet, certificate of higher degree (if any) like graduation and post graduation and scholarship documents (if available)
- Admission letter from the concerned institute with the address of the institute mentioned on its letterhead.
- All inclusive fee break-up of the academic course from the institute.
- Valid declaration confirming that there is no outstanding loan from any other bank.
- Visa approval and travel papers (if applicable).
Required documents of co-applicant (for salaried person)
- ID proof
- address proof
- Salary slips of the last three months on the letterhead of the employer
- Form 16 or IT return from the employer, both for the last two years
- Any other income proof which is not listed in the above mentioned documents
co-applicant required documents of (if self-employed)
- proof of identity
- address proof
- Bank statement of last six months
- Income tax return of last two years
- Proof of office like title deed or utility bill or lease deed
- Any other income proof worth mentioning
Vidya Lakshmi Education Loan Interest Rates
Different banks are under education loan by modi yojana with different interest rates. There are currently around 36 banks registered under the education loan scheme by Narendra Modi.
The interest rate depends on the bank in which you are applying, loan schemes, institute, course and also the loan amount.
Most of the banks charge 2% – 6% more than MCLR. You can also calculate the monthly EMI by visiting the official website of the bank. However, the interest rates range between 7% – 13% depending on various factors.
The repayment of education loan by Modi will start after the moratorium period ends. The moratorium period is the duration of the course plus one additional year or six months after the applicant has secured a job. The applicant will have to pay the EMI after the moratorium period.
Registered Banks under Vidya Lakshmi Education Loan
There are 38 banks which provide financial assistance under this scheme by Narendra Modi. You can apply for Modi Education Loan from these banks. Here is the list of banks under education loan scheme by Narendra Modi:
- Abhyudaya Cooperative Bank Limited
- Allahabad Bank
- axis Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Dombivli Urban Cooperative Bank Limited
- Federal Bank
- GP Parsik Bank Limited
- HDFC bank
- ICICI Bank
- IDBI Bank
- Indian Bank
- Indian Overseas Bank
- Karnataka Bank
- Kotak Bank
- Karur Vysya Bank
- New India Cooperative Bank Limited
- Oriental Bank of Commerce
- Pragati Krishna Gramin Bank
- Punjab And Sind Bank
- Punjab National Bank
- RBL Bank
- Syndicate Bank
- state Bank of India
- Tamil Nadu Mercantile Bank Limited
- UCO Bank
- Union Bank
- United Bank of India
- Vijay Bank
- yes bank
Compare Top Education Loan offers 2021
|bank||Education Loan Interest Rates In India||Education Loan Interest Rates In Abroad|
|Bank of Baroda||7.70%||8.35%|
|Bank of India||8.95%||8.95%|
|Bank of Maharashtra||8.55%||8.55%|
|Central Bank of India||8.50%||8.50%|
|Indian Overseas Bank||9.05%||9.05%|
|Karur Vysya Bank||10.60%||10.60%|
|Union Bank of India||8.40%||8.05%|
|United Bank of India||10.65%||10.65%|